Nissan, Honda planning to start merger talks as EV competition grows [Video]

Honda Motor and Nissan Motor are reportedly in the process of merging their companies and are set to start negotiations soon, according to Japanese media.

The news, which was first reported by the Nikkei newspaper on Tuesday, comes as both auto giants struggle to compete with the largest global electric vehicle (EV) makers, including Tesla and Chinese automaker BYD.

The merger plans have not been confirmed by either company. On Tuesday, both companies released identical statements tossing water on the reports.

“As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths,” the companies said in separate statements.

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Honda and Nissan are the second and third-largest auto manufacturers in Japan, respectively, with Toyota leading them both.

The respective market capitalizations of Honda and Nissan are roughly 5.95 trillion yen ($38.8 billion) …